A process with no beginning Work in Process, completed and transferred out 12,000 units during a period and had 1,000 units in the ending Work in Process that were 30% complete.Materials are added at the beginning of the process and conversion costs are added equally throughout the process.How much is the equivalent units of production for the period for conversion costs if the weighted-average method is used?
A)13,000 equivalent units
B)11,000 equivalent units
C)12,000 equivalent units
D)12,300 equivalent units

Question

Quizplus · Accepted Answer

For conversion costs, the equivalent units of production are calculated as the sum of the units completed and transferred out plus the equivalent units in the ending Work in Process. Here, 12,000 units were completed and transferred out, and the ending Work in Process had 1,000 units that were 30% complete for conversion costs. Therefore, the equivalent units for conversion costs are 12,000 + (1,000 * 30%) = 12,000 + 300 = 12,300 equivalent units.

A Process with No Beginning Work in Process, Completed and Transferred